China market helps beef up export growth in Australia

Australia's beef sector hit record production levels in the first quarter of this year, with growing demand from the Chinese market helping to power the strong start in the pillar industry amid global challenges.

Australia produced 730,077 metric tons of beef in the three months to March, up 2 percent compared to the preceding quarter and up 8 percent over the first quarter of 2025, marking "the largest first quarter beef production result on record" and reinforcing the scale of cattle supply, according to Meat & Livestock Australia, or MLA, the industry's marketing and research body.

"The result follows record production levels in 2025 and shows the sector has carried strong throughput into the new year. High processing volumes were driven by an intense global demand, sustained by a continuation of favorable seasonal conditions across northern Australia," MLA's Senior Market Information Analyst Emiliano Diaz said in a statement on May 22.

Growth in the Chinese mainland market accounted for a significant part of the performance, the MLA said. China's share of Australian beef exports grew to 21 percent in the first quarter, up from about 18 percent in the corresponding period a year ago, according to industry figures.

The March quarter results position the Australian beef industry strongly for the remainder of 2026, said Stephen Bignell, MLA's market information manager.

Critical role

"Australia continues to play a critical role in global red meat supply, and these results reinforce the industry's capacity to meet ongoing domestic and export demand," he said.

In April alone, Australian beef exports reached 140,943 tons, representing a year-on-year increase of 11 percent, with the Chinese mainland market recording "strong growth, with both grass-fed and specially grain-fed exports lifting sharply", according to the MLA.

Ben Udy, lead economist at Oxford Economics Australia, told China Daily that the record beef production and exports are "largely driven by favorable conditions here in Australia — a rebuilt herd now in a high-turnoff phase, good seasonal conditions in the north, and record grain-fed turnoff in the March quarter".

He also highlighted the role of the Chinese market and its evolving consumption patterns.

"China is a big market for Australia, accounting for around 20 percent of total beef exports and our second-largest destination," Udy said.

"Just as important as the volume is the shift up the value chain. As incomes in China have risen, demand for beef generally has grown, and demand for premium products in particular has been rising fast; the premium chilled segment has topped A$1 billion ($716.9 million) a year since 2023, with Australia the leading supplier," he said.

The ongoing Middle East conflict and its impact on fuel, freight and logistics have in the meantime added to uncertainty across international agricultural markets, with the current situation "best understood as one of operational disruption and cost pressure, rather than market closure or a collapse in demand", according to the MLA.

"While higher energy and freight costs are affecting customers globally — including in Australia — trade continues to adjust rather than contract," the meat industry body said.

The record-high Australian red meat exports in the past year and higher export volumes subsequently "reflect the resilience of the export system and its ability to remain engaged across global markets during volatile conditions", it said.

Udy from Oxford Economics Australia said direct exposure to the Middle East tensions remains limited, with most Australian meat exports going to Asian markets "that don't transit the affected routes".

"So, it's added uncertainty rather than a material disruption to date," he said, adding that diversification across global markets "is what insulates the industry".

alexishooi@chinadaily.com.cn